Stock By The Dollar

What’s an Index Fund?

Many investors like the simplicity of investing in index funds like the S&P 500, a collection of 500 companies that are representative of the overall stock market

Buying an index fund gives you instant diversification so you aren’t putting all your eggs in one basket. The fund’s prospectus will tell you what kinds of stocks are in the fund, how the fund has been doing, and other important information.